Dependent Care Flexible Spending Account (DCFSA)

Rutherford County Government offers the opportunity for employees to contribute pre-tax dollars to Dependent Care Flexible Spending Accounts (DCFSAs), commonly referred to as “Section 125” plans or “Cafeteria” plans. These were developed as part of Internal Revenue Code Section 125 to provide employees with tax relief for dependent daycare costs. DCFSAs enable employees to utilize pre-tax dollars and save Federal, FICA, and, in most cases, state taxes when paying for eligible expenses not covered by traditional insurance plans.

What is a Dependent Care Flexible Spending Account (DCFSA)?

DCFSAs are tax-advantaged accounts that let you use pre-tax dollars to pay for eligible dependent care expenses. A qualifying ‘dependent’ may be a child under age 13, a disabled spouse, or an older parent in eldercare.

What can a DCFSA be used for?

Examples of expenses that a DCFSA can be used for are child day care, babysitters, home care for dependent elders, and related expenses. For a more detailed list you may visit the Health Equity Website at https://www.healthequity.com/dcfsa-qme.

Am I eligible for a DCFSA?

To learn more, see IRS Publication 503 at www.irs.gov or visit https://www.healthequity.com/library/dcfsa-5-rules-you-need-to-know

Plan Document and Summary